| 1. |
Non-use value of an environmental good includes |
A. |
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Altruistic value and Bequest value. |
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B. |
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Only Altruistic value. |
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C. |
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Altruistic value, Existence value and Bequest value. |
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D. |
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Bequest value and Existence value. |
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| 2. |
Which of the following involves quantities instead of prices substituted for some goods, typically environmental goods. |
A. |
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Restricted Demand. |
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B. |
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Compensated Demand. |
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C. |
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Ordinary Demand. |
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D. |
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Both Compensated Demand and Ordinary Demand. |
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| 3. |
The Demand curve for environmental quality is also called |
A. |
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Net Social Benefit Curve. |
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B. |
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Net Marginal Benefit Curve. |
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C. |
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Marginal Comprimise Curve. |
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D. |
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Marginal Demand Curve. |
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| 4. |
Environmental valuation attempts to |
A. |
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Measure use value to study environmental impacts. |
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B. |
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Measure use and non-use value for environmental resources. |
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C. |
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Measure non-use value offered by environmental resources. |
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D. |
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Measure common peoples opinion on value offered environment. |
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| 5. |
When a garbage in the dump leaks into the ground it becomes a |
A. |
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Non-excludable and non-rival good. |
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B. |
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Non-excludable and rival good. |
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C. |
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Excludable and non-rival good. |
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D. |
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Only non-excludable good. |
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| 6. |
The economically optimal level of pollution abatement occurs when |
A. |
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Net social benefits are minimised. |
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B. |
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Net social benefits are maximised. |
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C. |
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Marginal benefits equal marginal costs. |
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D. |
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Externalities are ignored and market demand is set equal to market supply. |
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| 7. |
If pollution tax is used to control pollution , then the marginal abatement cost |
A. |
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Are all zero across firms. |
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B. |
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Are unequal across firms. |
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C. |
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Decline with additional unit of abatement. |
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D. |
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They are equal across firms. |
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| 8. |
According to Pigou, the environmental pollution is a reasult of divergence between |
A. |
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Social marginal cost and social benefit cost. |
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B. |
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Marginal Damage Cost and marginal benefit Cost. |
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C. |
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Social Marginal Cost and Marginal damage Cost. |
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D. |
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Social Marginal Cost and private Marginal Cost. |
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| 9. |
The Total Economic Value (TEV) is obtained by summing up |
A. |
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Direct and Indirect values. |
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B. |
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Direct and Indirect use values , Option values, Existence values. |
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C. |
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Existence and Option values. |
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D. |
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Indirect use values , Option values and Existence values. |
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